10-Q: Teucrium Trust Reports Strong Q1 2026 Performance

Teucrium Commodity Trust's Q1 2026 filing shows significant growth across its agricultural funds, driven by commodity price appreciation and investor inflows.

Summary

• The Teucrium Commodity Trust reported substantial growth in its net assets for the first quarter of 2026, with total net assets reaching $733,901,572 as of March 31, 2026.
• The Teucrium Corn Fund (CORN) saw a 497% increase in total net assets year-over-year, reaching $306,706,756.
• The Teucrium Soybean Fund (SOYB) experienced a 117% increase in total net assets year-over-year, closing at $55,500,302.
• The Teucrium Sugar Fund (CANE) reported a 75% year-over-year increase in total net assets, reaching $68,079,419.
• The Teucrium Wheat Fund (WEAT) showed a significant 163% year-over-year increase in total net assets, totaling $303,605,367.
• The Teucrium Agricultural Fund (TAGS) also saw substantial growth, with total net assets increasing by 202% year-over-year to $30,505,187.
• The 7RCC Spot Bitcoin and Carbon Credit Futures ETF (BTCK) had minimal activity, with net assets of $100, as it had not yet commenced operations.
• The Trust's overall financial performance was positively impacted by rising commodity prices and increased investor interest, attributed to geopolitical events.
• The Trust's combined statements of operations show a net income of $30,386,920 for the three months ended March 31, 2026, a significant improvement from a net loss of $3,107,483 in the same period of 2025.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this filing positively due to the significant asset growth, strong investor inflows, and improved profitability, driven by favorable commodity market conditions and geopolitical events.

Positives

• Significant year-over-year growth in total net assets across all active agricultural funds.
• Strong investor inflows, particularly in CORN, SOYB, CANE, and WEAT, driven by geopolitical events.
• Positive net income of $30,386,920 for the combined Trust in Q1 2026, a substantial turnaround from a net loss in Q1 2025.
• Increased interest income due to higher average net assets and interest rates.
• The Teucrium Wheat Fund (WEAT) demonstrated exceptional performance with a 17.45% total return for the quarter.
• The Teucrium Soybean Fund (SOYB) also showed strong performance with an 11.47% total return for the quarter.
• The Teucrium Sugar Fund (CANE) achieved a 6.56% total return for the quarter.
• The Teucrium Corn Fund (CORN) delivered a 3.42% total return for the quarter.
• The Teucrium Agricultural Fund (TAGS) provided a 9.68% total return for the quarter.

Negatives

• The Teucrium Sugar Fund (CANE) experienced a decrease in Net Asset Value (NAV) per share of (5.3%) between March 31, 2026, and May 8, 2026.
• The Teucrium Agricultural Fund (TAGS) saw a decrease in total net assets by (26.1%) between March 31, 2026, and May 8, 2026.
• The Teucrium Agricultural Fund (TAGS) also experienced a decrease in NAV per share of (0.4%) between March 31, 2026, and May 8, 2026.
• The Teucrium Corn Fund (CORN) experienced a decrease in NAV per share of ($0.19) or (0%) year-over-year.
• The Teucrium Wheat Fund (WEAT) saw a decrease in NAV per share of $0.07 or 0% year-over-year.

Risks

• Geopolitical instability, including conflicts in the Middle East and Russia/Ukraine, can cause volatility in commodity prices and negatively impact fund performance.
• Severe weather events, natural disasters, pandemics, and other public health disruptions can disrupt economies and markets, affecting commodity prices and investment values.
• Changes in global economic conditions, international trade policies, and currency valuations can impact commodity prices.
• The Funds' performance is subject to the risks of commodity futures markets, including the potential for contango, which can adversely impact returns.
• The Funds are subject to credit risk from counterparties and clearinghouses, although this risk is mitigated by exchange-traded contracts and segregation of customer funds.
• Regulatory changes in the futures and derivatives markets could materially alter the Funds' investment strategies or operations.
• The Funds' NAV may not accurately track the performance of their respective benchmarks due to market inefficiencies or other factors.
• The 7RCC Spot Bitcoin and Carbon Credit Futures ETF (BTCK) has not commenced operations and its future performance is uncertain.

Future Outlook

The Trust's performance is expected to continue to be influenced by geopolitical events, global economic conditions, and weather patterns affecting commodity production and demand. The Sponsor aims to manage the Funds to closely track their respective benchmarks, mitigating the impact of contango and backwardation where possible.

Management Comments

• The change in total net assets year over year was generally due to a combination of the appreciation of commodity prices and investor inflows which was driven by war and other geopolitical events, including but not limited to Russia and Ukraine and conflicts in the Middle East have caused and may continue to cause volatility in commodity prices.
• The Sponsor has a static benchmark as described above and trades futures contracts to adhere to that benchmark and to adjust for the creation or redemption of shares.
• The increase in interest and other income year over year was due to higher average net assets and interest rates.
• The structure of the Fund and the nature of the expenses are such that as total net assets grow, there is a scalability of expenses that may allow the total expense ratio to be reduced.

Industry Context

StockSavvy.ai notes that the strong performance of the Teucrium Commodity Trust's agricultural funds in Q1 2026 reflects broader market trends where geopolitical instability and supply chain concerns have driven increased investor interest in commodities as a hedge and a store of value. This aligns with a general uptick in commodity ETF performance observed across the sector.

Comparison to Industry Standards

• The Teucrium Commodity Trust's funds are designed to track specific commodity futures benchmarks, and their performance is measured against these benchmarks. The filing indicates that for the period from January 1, 2026, through March 31, 2026, the average daily change in the NAV of each Fund was within plus/minus 10 percent of the average daily change in its respective Benchmark.
• The total expense ratios for the funds range from approximately 2.60% to 3.23% (gross and net of waivers), which are within the typical range for actively managed commodity-focused ETFs.
• The premium/discount analysis for CORN, SOYB, CANE, WEAT, and TAGS shows a significant number of days trading at a discount, which is common for commodity ETFs due to the complexities of futures roll yield and market sentiment.

Legal Proceedings

• A settlement agreement was entered into on April 26, 2024, resolving all claims in three separate legal actions against Teucrium Trading, LLC, Salvatore Gilbertie, Carl Miller III, Cory Mullen-Rusin, Steve Kahler, and Dale and Barbara Riker.

Related Party Transactions

• The Sponsor, Teucrium Trading, LLC, receives management fees from the Agricultural Funds (except TAGS) at a rate of 1.00% per annum of average daily net assets.
• The Sponsor pays for routine operational, administrative, and other ordinary expenses of the Funds from the management fees received.
• Certain aggregate expenses common to all Funds are allocated by the Sponsor, some of which relate to services provided by the Sponsor or its principals.
• Expenses paid by the Sponsor and management fees waived by the Sponsor are presented as waived expenses in the statements of operations.

Stakeholder Impact

• Shareholders have benefited from significant increases in the net asset value of their investments in the agricultural funds due to commodity price appreciation and investor inflows.
• The Funds' ability to track their benchmarks and manage market risks is crucial for investor returns.
• The ongoing geopolitical events may continue to influence commodity prices, impacting future returns for all stakeholders.
• The introduction of BTCK as a new series may attract new investors interested in cryptocurrency futures.

Next Steps

• Continue to monitor commodity prices and geopolitical events impacting agricultural markets.
• Observe the performance of the 7RCC Spot Bitcoin and Carbon Credit Futures ETF (BTCK) once it commences operations.
• Analyze the impact of any future regulatory changes on the Funds' operations and investment strategies.

Key Dates

Recommendation

While the Trust has shown strong asset growth and positive performance in Q1 2026, driven by market conditions, the inherent volatility of commodity futures and the potential impact of geopolitical events warrant a cautious approach. The NAV per share decreases in some funds year-over-year, despite overall asset growth, suggest a need for careful monitoring. Therefore, a 'hold' recommendation is appropriate, advising investors to maintain their current positions while observing market developments.

Keywords

Teucrium Commodity Trust, 10-Q Filing, Corn Futures, Soybean Futures, Sugar Futures, Wheat Futures, Agricultural Commodities, Commodity ETFs, Q1 2026 Earnings, Market Risk, Geopolitical Impact, Investor Inflows